Immigrants to Britain are more likely to hold a higher education qualification than the wider population, with Nigerians in particular more likely to have a degree, official data has shown.
A publication by the Office for National Statistics showed that almost 44 per cent of adult residents born outside the UK have some form of qualification, compared with about 31 per cent of UK-born residents.
The figures were released by the ONS using self-reported data from the 2021 census covering England and Wales.
Almost a fifth of adult residents in England and Wales were born outside the UK.
Nigerian immigrants have a particularly high level of educational achievement, with 66 per cent having received a qualification of any kind. This outpaces Britain's other large immigrant groups, including Indians and South Africans.
Overall, there are more than 250,000 Nigerians and more than 850,000 Indians living in England and Wales, according to the census.
For residents born in Pakistan and Bangladesh, the percentage holding higher education qualifications was lower than for the UK-born population, at about 29 per cent and 24 per cent, respectively.
The data showed that, on average, immigrants are usually significantly younger than the rest of the population and are therefore more likely to be university or college educated.
Adjusting for age between UK-born and foreign-born groups narrows the education gap by about a third, but “doesn’t fully close it”, according to the ONS's Glenn Garrett.
“It’s not possible to fully explain the trend, but as work and study are common reasons for migration, this may contribute to migrants being more likely to be highly qualified,” he told The National.
Data showed that Taiwanese immigrants were the group with the highest level of education at 80 per cent, with Mexicans and South Koreans the next most educated groups – but these groups are small overall.
Immigrants from the Gulf were also more likely to have a qualification. Almost 58 per cent of those from the UAE have a qualification, while that number rises to 62 per cent for those from Oman and 63.9 per cent for those from Saudi Arabia.
The ONS data also showed that the foreign-born children of immigrants from lower-income countries were more educated than their parents.
The report said this was particularly apparent in many countries where asylum claims are common, such as Afghanistan, Eritrea, Somalia and Iraq.
“In some cases, we can see migrants who arrived at a young age are much more highly qualified than those from the same country who arrived when they were older,” the report says.
“This suggests the younger groups have benefitted from social mobility.”
Towns and cities have a particularly high concentration of educated immigrants, with Cambridge, York and London and its surrounding areas with a high number of educated immigrants.
But in areas such as Blackburn and Darwen, Oldham and Bradford, immigrants were much less likely to have a qualification from a higher education institution, data showed.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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